Small Businesses

Small businesses are the backbone of Maryland’s economy. Investing in energy efficiency, electrification, and renewable energy can help Maryland’s small businesses reduce their operating costs - and therefore increase profits.

The Maryland Clean Buildings Hub (the Hub) is committed to help building owners and operators understand the range of incentives for which they may qualify. Sign-up for the Hub's newsletter here. Have questions? Contact [email protected].

Incentives

Maryland’s small businesses can tap into a range of state, federal, utility, and local incentives to help defray the costs of energy efficiency, electrification, or onsite renewable energy measures to existing or new buildings. The Maryland Clean Buildings Hub is committed to help building owners and operators understand the range of incentives for which they may qualify.

State:

Commercial & Industrial Grant Program: This program provides eligible commercial buildings funding for cost-effective energy efficiency and conservation upgrades for existing, major renovation, and new construction projects that are above minimum code and performance standards and claim at least 20% energy savings.

Jane E. Lawton Conservation Loan Program: This program provides low-interest financing for cost-effective energy efficiency and conservation projects in commercial buildings.

Mechanical Insulation Grant Program: This program provides grants for installing mechanical insulation in industrial and commercial facilities to reduce energy waste, thereby enabling energy-saving improvements to large-scale thermal distribution networks.

Commercial & Canopy Solar Grant Program: This program provides funding for solar PV systems that will be owned by or directly benefit (1) low-to-moderate income communities located in a census tract with an average median income at or below 80% of the average median income for the State, or (2) overburdened or underserved communities.

Maryland Clean Energy Capital (MCAP): Provides long-term financing solutions for funding large projects - offers clean energy and efficiency financing to government, institutions, and nonprofit organizations.

Commercial Property Assessed Clean Energy (C-PACE): MCEC administers the State of Maryland's C-PACE program, which is a means of financing energy and/or water efficiency, renewable energy, resiliency, or environmental remediation measures in commercial buildings with no up-front cost.

Federal:

Small Business Administration (SBA) 504 Green Loan Program: Small businesses looking to grow their business can qualify for commercial real estate loans under SBA 504′s Green Loan program, and the SBA 504 Green Loan offers up to $5.5 million in financing per project from the SBA.

Sec. 179D Energy Efficient Buildings Tax Deduction: New and existing commercial and multifamily buildings that demonstrate a 25% to 50% improvement from their pre-retrofit baseline EUI may be able to claim a tax deduction.

Sec. 48E Clean Electricity Investment Tax Credit: The credit is available to taxpayers with a qualified facility and energy storage technology placed in service after Dec. 31, 2024. The Clean Electricity Investment Credit phase-out starts for the later of 2032 or when U.S. greenhouse gas emissions from electricity are 25% of 2022 emissions or lower.
Sec. 45Y Clean Electricity Production Tax Credit: The credit is available to taxpayers with a qualified facility and energy storage technology placed in service after Dec. 31, 2024. The Clean Electricity Production Credit phase-out starts for the later of 2032 or when U.S. greenhouse gas emissions from electricity are 25% of 2022 emissions or lower.

Local:

Montgomery County Green Bank C-PACE Program: The Montgomery County Green Bank administers C-PACE financing in Montgomery County.

Montgomery County Green Bank Tailored Structured Finance: Montgomery County Green Bank provides financing for commercial properties seeking to complete energy performance improvements and source of significant energy savings and GHG reduction.

Montgomery County Energy-Efficient Buildings Property Tax Credit: Montgomery County’s Energy-Efficient Buildings program is a two-tiered incentive of property tax credits for new and existing energy-efficient commercial and multifamily buildings.

Prince George’s County Commercial Property Assessed Clean Energy (C-PACE) Program: Assists commercial property owners in accessing financing up to 20% of the appraised value to make qualifying energy efficiency and clean energy improvements to commercial properties with loans that are repaid through an annual surcharge on the owner’s property tax bill.

Prince George’s County Green Energy Loan Program: This program provides loans up to $250,000 for commercial building energy efficiency improvements, energy conservation and renewable energy measures.

Utility:

Visit the Financial Resources page for a full list of EmPOWER Maryland utility incentive opportunities.

Technical Assistance

Looking for technical assistance for your small building upgrades? The Hub offers guidance and support to help Marylanders take the next step toward cleaner, more efficient energy solutions.

Maryland Clean Energy Center (MCEC) Procurement & Technical Assistance: Provides procurement and technical assistance services for clean energy and decarbonization projects.

Montgomery County Green Bank Technical Assistance Program: Montgomery County Green Bank's Technical Assistance Program supports studies for commercial, nonprofit, and multi-family buildings to reduce emissions. Studies may include ASHRAE Level I, Level II, Level III/ Investment Grade audits and/or targeted analyses into benchmarking, energy efficiency, renewable energy (e.g., solar PV), electrification, EV charging infrastructure, and resiliency measures.

Montgomery County Benchmarking Ambassadors: A list of stakeholders, volunteers, and energy service companies who have received an orientation to the County’s Benchmarking Law on how to properly benchmark in Portfolio Manager. Please note that inclusion in this list does not confer certification, an official endorsement, or approval from the Montgomery County Government or any of its agencies.

Resources

The Hub invites you to explore the materials below to help guide your next steps. Use these resources to help move your building decarbonization project forward with greater confidence.

Benchmarking: The process of tracking a building's annual energy use and using a standard metric to compare the building's performance against past performance and to similar building types. Benchmarking improves understanding of energy consumption patterns; helps identify energy saving opportunities within a

Energy Audits: Conducting an energy audit is a recommended first step in a building’s electrification and decarbonization journey.

ENERGY STAR Tax Credit and Rebate Finder Tool: This tool helps users find financial incentives for efficient appliances, such as heat pumps, heat pump water heaters, insulation, windows, and electric upgrades.

Better Buildings Initiative: The Department of Energy's Better Buildings Initiative helps commercial and industrial buildings identify cost-effective energy and water efficiency solutions by barrier, building type, sector, technology, and more.

Small Businesses

​ Incentives​

Technical Assistance

​ Resources

Incentives

Resources